Malaysia’s palm oil stocks to fall for third straight month in March
Malaysia’s palm oil stocks fell to 2.17 million tonnes in March, marking a third monthly decline as exports surged nearly 39% and outpaced rising production. However, prices dropped over 3% after a crude oil slump, reducing biodiesel demand appeal and adding pressure to global vegetable oil markets.
Malaysia’s palm oil stocks were estimated at 2.173 million metric tons by the end of March, marking a third consecutive month of decline, as rising exports were seen outpacing a moderate increase in production at the world’s second-largest supplier of vegetable oils, a poll of 14 analysts, traders, and growers by Platts, part of S&P Global Energy, showed April 8.
Malaysia’s palm oil stocks had hit a seven-year high of 3.051 million mt at the end of December, driven by stronger production and slower demand from the largest buyers, India and China, according to data from the Malaysian Palm Oil Board.
Palm oil production is expected to rise to 1.375 million mt in March, up 7% from the previous month, according to Platts survey.
Exports were pegged at 1.565 million mt, up 38.9% month over month, the survey said.
The MPOB is set to release the official supply and demand data on April 10.
| S&P Global survey | March 2026 median | March 2026 range | Feb 2026 (MPOB) | Change |
| Production | 1.375 | 1.34 – 1.41 | 1.285 | 7% |
| Imports | 0.06 | 0.03 – 0.065 | 0.04 | 49.9% |
| Exports | 1.565 | 1.55 – 1.66 | 1.128 | 38.9% |
| Local consumption | 0.373 | 0.35 – 0.4 | 0.344 | 8.1% |
| Ending stocks | 2.173 | 2 – 2.21 | 2.704 | -19.6% |
all figures in million mt
Source: S&P Global Energy, MPOB
Prices slump on ceasefire
Malaysian palm oil futures fell more than 3% on April 8 as crude oil prices plunged following a US-Iran ceasefire deal, along with weaker vegetable oil prices in global markets and a stronger Malaysian Ringgit.
The benchmark third-month palm oil contract for June delivery on the Bursa Malaysia exchange traded at MR 4,615/mt ($1,158.67) 13:16 SGT, down 3.1% day over day.
Crude oil prices fell below the $100 per barrel mark on April 8 as US President Donald Trump said he had agreed to a two-week ceasefire with Iran, subject to the safe reopening of the Strait of Hormuz.
Palm oil futures are closely linked to crude oil futures, as lower fossil fuel prices make palm oil less attractive as a biodiesel feedstock.
Limited buyers of palm oil have started to appear after losing patience while waiting for prices to fall, but price levels above MR 4,900/mt are too high for buyers, Sandeep Singh, director at Kuala Lumpur-based vegetable oil seller The Farm Trade, said April 6.
Platts assessed the price of crude palm oil FOB Indonesia at $1,265/mt April 7, unchanged day over day.
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Source : Ukr Agro Consult
